Cloud-based Payroll Software Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2021 - 2026

Report Code: ITR 44711 Report Format: PDF + Excel

Cloud-Based Payroll Market Overview

The global Cloud-Based Payroll Market is forecast to reach $11.4 billion by 2026, advancing at CAGR 6.0% during the forecast period 2021-2026. Globally, increasing demand for secured cloud backup of employee data among various organizations is set to be the major driver of the Cloud-Based Payroll Market. Cloud-based payroll software provides seamless payroll outsourcing which includes leave management solution, workers compensation management as well as better tax liability over on-premise systems. Such benefits are set to accelerate the Cloud-Based Payroll Software adoption during the forecast period 2021-2026. Moreover growing demand for payroll software among small and medium enterprises for increasing work efficiency is another factor that has been contributing to the growth of the market.

Cloud-Based Payroll Market Report Coverage

The report based on: “Cloud-Based Payroll Market Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Cloud-Based Payroll Market Industry Outlook.

By Organization Size: Small Enterprises, Medium Enterprises, Large Enterprises.
By Industry: BFSI, Retail & E-commerce, Pharmaceutical, Healthcare, IT & Telecommunications, Others.
 By Geography: North America (USA, Canada and Mexico); Europe (U.K., Germany, Italy, France & Rest of Europe); APAC (China, Japan, South Korea, India & Rest of APAC); South America (Brazil, Argentina & Rest of South America); RoW (Middle East & Africa)

Key Takeaways

  • Large enterprises are analyzed to hold highest share in Cloud-Based Payroll Software Market.
  • Retail and E-commerce is the fastest growing segment in Cloud-based Payroll Software Market and is estimated to grow at around CAGR of 7.9% during the forecast period.
  • North America dominated the Cloud-Based Payroll Software Market in terms of value $2.9 Billion in 2020 owing to the adoption of cloud based payroll software.

Global Cloud based Payroll Market Value Share, By Geography, 2020 (%)

 

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Cloud-Based Payroll Market Segment Analysis- By Organization Size

Based on Size of Organization, the cloud based payroll software market is segmented into small enterprises, medium sized enterprises and large enterprises. Large enterprises are analyzed to hold highest share and grow at CAGR of 5.7% during the forecast period 2021-2026. It provides organizations with scalable framework and real time information such as continual pay calculations and efficient decision making.

Cloud-Based Payroll Market Segment Analysis- By Industry

Retail and E-commerce is the fastest growing segment in Cloud-based Payroll Software Market and is estimated to grow at around CAGR of 7.9% during the forecast period. With continuous expansion, retail sector and e-commerce has become one of the highest employment generators in many countries. The ongoing Covid19 pandemic has contributed for the growing e-commerce and retail sector as people are switching to online shopping. Increasing staff rate calls for seamless payroll and HR management. To solve the problems of inefficient time tracking, inaccurate salary calculation and disbursements, retail industry are switching to cloud based payroll solutions.

Cloud-Based Payroll Market Segment Analysis- By Geography

North America held the highest Cloud-Based Payroll Market share of around 32.6% in the global Cloud-Based Payroll Market in 2020 and is further set to grow at a significant rate during the forecast period 2021-2026. The factor such as presence of large number of organizations with enormous employee base has been contributing to the market growth across the region in long run. As per IndustryARC recent study, USA based Walmart had the highest number of employees base i.e. 2.2 million globally, thereby increasing the demand for cloud based payroll software to keep track of the employees. Moreover, growing payroll start ups will create opportunities for the growth of the market. In January 2021, Payroll Infrastructure startup Check announced its launch publicly and raised $35 Million from Stripe and Thrive Capital.

Cloud-Based Payroll Market Drivers 

Rise in demand in IT and Telecommunication sector

IT and Telecommunication Sector is considered to be one of the most organized and streamline industries. The IT and Telecommunication industry is not only facing technological challenge but also HR challenge as well. Adoption of cloud based payroll software in IT and Telecommunication helps to improve payroll flexibility and mobility, compensation management, remote workforce management, automated time attendance, leave management and automated performance management. As organizations shifted to remote work due to ongoing Covid19 pandemic, cloud based payroll are in huge demand. This set to drive the market.

Compliance is simplified

Cloud based payroll software allows organizations to comply with statutory regulations of the Government. With payroll, business adapt to compliance laws for PF, ESI, PT, IT and others. In 2019, Asanify, a Kolkata based payroll startup company, not only helps in salary management for SME’s but also helps in depositing and filing payroll compliance such as PF, ESI and TDS. It also provides AI based platform which helps employees to download pay slip and apply for leave through whatsapp or slack.

Cloud-Based Payroll Market Challenges

Data Security issues

Though cloud based payroll software have many advantages but data Security issue becomes a prime concern for every organization which acts as a major challenge restraining the market growth of Cloud based Payroll. Cloud based payroll software depends on 3rd party to process and store payroll information such as employees name, address, bank account details, social security number and salary information which sometimes leads to loss or theft of data. Owing to the above mentioned factors, use of cloud based payroll software will be significantly impacted, thus hampering its market growth.

Cloud-Based Payroll Software Market Landscape

Partnership, Acquisitions, Collaboration, technology launches and R&D activities are key strategies adopted by players in the Cloud-Based Payroll Software Market. The Cloud-Based Payroll Software Market top 10 companies include ADP Inc, Gusto, Ascentis Hr Software, Oracle Corporation, onPay, PAYCHEX Inc, Intuit QuickBooks Payroll, Zenefits, Ceredian Dayforce Corporation and TriNet.

Acquisitions/Technology Launches

In February 2021, Gusto, a cloud based payroll company announced a partnership with Workiz, a software company, to help service professionals with payroll, human resource management and staffer benefits.

In September 2020, PayChex Inc, a key provider of HR, payroll, benefits and insurance solutions announced 3 new solutions that will be available in PayChex Flex such as Covid19 Leave Tracking, Covid19 Screening and Health Attestation Support to help its customers navigate new business and wellness needs.

Relevant Report Titles

Compensation Management Software Market- Forecast (2021 - 2026) 

Report Code: ITR 0282

Human Resource Management Market- Forecast (2021-2026)

Report Code: ITR 49728

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1. Cloud based Payroll Market - Market Overview
    1.1 Definitions and Scope
2. Cloud based Payroll Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends by type
    2.3 Key trends segmented by Geography
3. Cloud based Payroll Market– Industry Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis
4. Cloud based Payroll Market – Startup companies Scenario Premium Premium
    4.1 Top 10 startup company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Market Shares
        4.1.4 Market Size and Application Analysis
        4.1.5 Venture Capital and Funding Scenario
5. Cloud based Payroll Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case studies of successful ventures
    5.4 Customer Analysis – Top 10 companies
6. Cloud based Payroll Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Cloud based Payroll Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. Cloud based Payroll Market – By Organization size
    8.1 Small Enterprises
    8.2 Medium Enterprises
    8.3 Large Enterprises
9. Cloud based Payroll Market– By Industry
    9.1 Healthcare
    9.2 IT and Telecommunications
    9.3 BFSI
    9.4 Retail and E-commerce
    9.5 Pharmaceutical
    9.6 Others
10. Cloud based Payroll Market - By Geography (Market Size -$Million)
    10.1 North America
        10.1.1 U.S
        10.1.2 Canada
        10.1.3 Mexico
    10.2 Europe
        10.2.1 UK
        10.2.2 Germany
        10.2.3 Italy
        10.2.4 France
        10.2.5 Spain
        10.2.6 Netherlands
        10.2.7 Rest of Europe
    10.3 Asia Pacific
        10.3.1 China
        10.3.2 Japan 
        10.3.3 South Korea
        10.3.4 India
        10.3.5 Australia & New Zealand
        10.3.6 Rest of Asia Pacific
    10.4 South America
        10.4.1 Brazil
        10.4.2 Argentina
        10.4.3 Rest of South America
    10.5 ROW
        10.5.1 Middle East
        10.5.2 Africa
11. Cloud based Payroll Market - Market Entropy
    11.1 New product launches
    11.2 M&A's, collaborations, JVs and partnerships
12. Cloud based Payroll Market – Industry / Segment Competition landscape Premium Premium
    12.1 Market Share Analysis
        12.1.1 Market Share by Country- Top companies
        12.1.2 Market Share by type of Vehicle – Top 10 companies
        12.1.3 Best Practices for companies
13. Cloud based Payroll Market – Key Company List by Country Premium Premium
14. Cloud based Payroll Market - Company Analysis
    14.1 ADP Inc
    14.2 Gusto
    14.3 Ascentis Hr Software
    14.4 Oracle Corporation
    14.5 onPay
    14.6 PAYCHEX Inc
    14.7 Intuit QuickBooks Payroll
    14.8 Zenefits
    14.9 Ceredian Dayforce Corporation
    14.10 TriNet